Case Study: GlaxoSmithKline achieves 60% invoice processing cost reduction and 94% on-time payments with SAP Ariba

GlaxoSmithKline Improving Compliance and Invoice Management with Smart Invoicing

GlaxoSmithKline (GSK), the world’s third-largest pharmaceutical company, faced high accounts-payable costs and long invoice cycle times despite early EDI adoption: nearly half of its invoice volume remained on paper, driving processing expense, delayed payments and weak PO compliance. The Shared Financial Services group needed a cost-effective way to transition paper suppliers to electronic invoicing and enforce purchase-order usage.

GSK implemented Ariba’s e-invoicing with smart invoicing and the Ariba Network, enrolling more than 1,800 suppliers in under a year (2,300+ today) and offering PO-Flip, supplier self-service and automated validation rules. Results included a 33% drop in paper invoices in nine months, a 60% reduction in processing costs ($4.47 to $1.72/invoice), 90% faster invoice receipt (21 to 2 days), 85% of invoices managed electronically, 94% on-time payments, 30% fewer supplier calls and progress toward a 20% Shared Services savings goal.

GlaxoSmithKline

Al Barbee

Director, North America Shared Financial Services